Performance Management Approaches/Tools

4.5.21
 Performance Evaluating Tools-4.5.21

1. Evaluating Performance with Absolute Standards:

Critical Incident Appraisal
Checklist Appraisal
Graphic Rating Scale Appraisal
Forced choice and
Behaviorally Anchored Rating Scale ( BARS )

2. Evaluating Performance with Relative Standards:

Individual Ranking
Paired Comparison
Group Order Ranking
Evaluating Performance with Absolute Standards

First group of appraisal methods uses absolute standards . This means

that employees are compared to a standard, and their evaluation is
independent of any other employee in a work group. This process
assesses employee’s job traits and/or behaviors.
 Critical Incident Appraisal

Definition: Focuses the rater’s attention on critical or key behaviors that make the
difference between doing a job effectively and doing it ineffectively.

Methodology:
The appraiser writes down anecdotes describing employee actions that were
especially effective or ineffective.
Example: A police sergeant might write the following critical incident about one of
her officers: “Brought order to a volatile situation by calmly discussing options with
an armed suspect during a hostage situation, which resulted in all hostages being
released, and the suspect being apprehended without injury to any individual.”
Advantages
1. The strength of the critical incident
method is that it looks at behaviors.
2. Additionally, a list of critical incidents
provides a rich set of examples that can
be used to point out which employee
behaviors are desirable and which ones
call for improvement.
Disadvantages
Appraisers must regularly write these
incidents down, and doing this on a daily
or weekly basis for all employees is time
consuming and burdensome for
supervisors;
Critical incidents are difficult to quantify
making comparison and ranking of
employees difficult and without training,
supervisor descriptions of behaviors may
be subjective.
 Checklist Appraisal

Definition: The evaluator uses a list of behavioral descriptions and checks off
behaviors that apply to the employee.

Methodology:
1. Once the checklist is complete, it is usually evaluated by the HRM staff, not the
appraiser completing the checklist.
2. The rater does not actually evaluate the employee ’ s performance; he or she
merely records it.
3. An HRM analyst scores the checklist, often weighting the factors in relationship
to their importance to that specific job.
4. The final evaluation can either be returned to the appraiser for discussion with
the employee, or someone from HRM can provide the feedback.
Advantages
1. The strength of the critical incident
method is that it looks at behaviors.
Disadvantages
However, the rater usually can pick up
the positive and negative connections in
each item—so bias can still be
introduced.
From a cost standpoint, too, this
appraisal method may be inefficient and
time consuming as HRM spends
considerable time in developing
individualized checklists of items for
numerous job categories.
 Graphic Rating Scale Appraisal

Definition: A performance appraisal method that lists traits and a range of

performance for each.

Methodology:
The assessor goes down the list of factors and notes the point along the scale or
continuum that best describes the employee. There are typically 5–10 points on
the continuum. The challenge in designing the rating scale is to ensure that factors
are evaluated and scale points are clearly understood and are unambiguous to the
rater.
Advantages
1. They are less time consuming to
develop and administer.
2. They also provide a quantitative
analysis useful for comparison purposes.
Disadvantages
However, this method is most valid
when abstract traits such as loyalty or
integrity are avoided, unless they can be
defined in more specific behavioral
terms.
Graphic Rating Scale can be bias.
Forced‐Choice Appraisal

Definition: A performance evaluation in which the rater must choose

between two specific statements about an employee’s work behavior.
Each statement may be favorable or unfavorable.

Methodology:
The appraiser ’ s job is to identify which statement is most (or in some
cases least) descriptive of the individual being evaluated.
Advantages Disadvantages
1. The appraiser does not know the Many appraisers do not like being forced
“right” answers, it reduces bias and to make distinctions between similar‐
distortion. sounding statements.

Raters also may become frustrated with

a system in which they do not know
what represents a good or poor answer.
Consequently, they may try to second‐
guess the scoring key to align the formal
appraisal with their intuitive appraisal.
 Behaviorally Anchored Rating Scale ( BARS )

Definition: A performance appraisal technique that generates critical incidents and

develops behavioral dimensions of performance. The evaluator appraises behaviors
rather than traits. Behaviorally anchored rating scales specify definite, observable,
and measurable job behavior.

Methodology:
1. Examples of job‐related behavior and performance dimensions are generated
by asking participants to give specific illustrations of effective and ineffective
behavior regarding each performance dimension;

2. These behavioral examples are then translated into appropriate performance

dimensions.
3. These performance dimensions are then retained/used for employee evaluation.

4. The final group of behavior incidents is then numerically scaled to a level of

performance each is perceived to represent.

5. The identified incidents with high rater agreement on performance effectiveness

are retained for use as anchors on the performance dimension.

6. The results of these processes are behavioral descriptions such as anticipates,

plans, executes, solves immediate problems; carries out orders; or handles
emergency situations.
Advantages
1. BARS research indicates that, although
it is far from perfect, it does tend to
reduce rating errors.
2. The specific feedback that it
communicates.
Disadvantages
However, BARS can also create distortion
and confusion regarding which
behavioral traits should be included for
individual employee’s performance.

3. The process of developing behavioral

scales is valuable for clarifying to both
the employee and the rater which
behaviors represent good performance
and which don ’ t.
Evaluating Performance with Relative Standards: Assignment

Individual Ranking

Paired Comparison

Group Order Ranking